FORMULA amp JCPS PRELIMINARY BUDGET 1 st Step in School Budgeting Amend Current Year Budget Most of the budget repeats 77 of Revenues from Property Taxes Prop C and Basic Formula 83 of Expenses in Salary and Benefits ID: 586707
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Slide1
MISSOURI’S FOUNDATION FORMULA & JCPS PRELIMINARY BUDGETSlide2
1st Step in School BudgetingAmend Current Year BudgetMost of the budget repeats77% of Revenues from Property Taxes, Prop C, and Basic Formula
83% of Expenses in Salary and Benefits
Then Determine What Will Be Different Next YearSlide3
Amended FY13 BudgetOriginal Budget called for $1,232,000 deficit24.8% Fund BalanceAfter 3 amendments, currently $870,000 deficit25.7% Fund Balance
Slide4
Funding Formula-Current StateCalculated State Adequacy TargetFY 12 - $6,131FY 13 - $6,423
FY 14 - $6,716
No guidance in law on how to handle underfunding once the formula phase-in period ended.
Formula fully phased in after FY12
General Assembly did not address this last year which left the decision to DESE.Slide5
DESE Ruling on Distribution of FormulaKeep SAT at $6,131 until Proration is 100%Calculated SAT $6,423 in FY14All districts get equal percentage increases as proration rises
After Proration is 100% then SAT can rise.
FY12 Proration = 92.5%
FY12-Formula is over $450 million underfunded Slide6
WADA Threshold Changes
2011-12
2012-13
Difference
Total
ADA (Includes SS)
8,104
8,317
213
F&R Lunch
Threshold %
32.0%38.8%F&R Lunch Threshold #2,5933,227F&RL Students4,3004,3000F&RL WADA427268-159LEP Threshold %0.9%1.8%LEP Threshold #73150LEP Students237201LEP WADA9831-67Total WADA8,6298,616-13
Even though we gained
213
students our WADA count goes down by
13.
We will be paid on the prior year. JCPS misses out
on over $1,200,000
in funding for those
213
students, if the thresholds did not changeSlide7
BASIC FORMULA-FY 14Calculated SAT increases over 4.5%$6,716Payment SAT remains at $6,131Governor recommended $66 million increaseMoves proration to 95%Because of higher SAT
$600 million underfundedSlide8
Description of Revenue Changes
$ Amount
LOCAL PROPERTY
TAX-New
Construction and Personal Property Increase
$500,000
STATE
AID-Based
on Governor’s recommendation
$500,000
PROP
C – Increased State Collections and Increased Students$150,000Interest Income (90 day T-Bill has to go higher than 0.1% Someday)$0County Stock Insurance (FY13 was $750,000 lower than FY12)$0IDEA & Title I-10% Sequestration-$336,000TOTAL CHANGE IN REVENUE$814,000FY14 PRELIM BUDGET-Revenue ChangesSlide9
FY14 PRELIM BUDGET-Expense Changes
Description
of Expenditure Changes
$ Amount
Salary-
Operate Teacher Schedule & 1.8% to All Other Classes
$
882,500
Benefits Associated
with Raises (Retirement, Medicare, OASDI)
$
101,900Health Insurance-5% Increase in Board Contribution$0Staff Retirements-$250,000PSRS/PEERS Rate Increases (Remain at 14.5% & 6.86%)$0Property/Liability Insurance – 10% Increase$22,000Transportation$50,000Energy-Increase by 10% (Electricity, Natural Gas, Diesel Fuel)$194,300TOTAL CHANGE IN EXPENDITURES$1,000,700Slide10
FY14 PRELIM BUDGET-Fund Balance
Description
of Fund Balance Change
$ Amount
FY2013
Change in Fund Balance
-$872,000
+ Change
in Revenues
FY14
vs.
FY13$814,000- Change in Expenditures FY14 vs. FY13$1,000,700- Change In Transfers Out of Operating Fund FY14 vs. FY13$ 0TOTAL CHANGE IN FUND BALANCE FY2014-$1,058,700Slide11Slide12
FEDERAL SEQUESTRATION IS MAJOR REVENUE QUESTIONMARK.CHANGES MADE IN HEALTH INSURANCE, RETIREMENT, & TRANSPORTATION HAVE BEEN HUGE IN ALLOWING US TO MAINTAIN OUR CURRENT LEVELS OF EDUCATIONDISTRICT’S FISCAL POSITION REMAINS SOLIDSUMMARY